Gold prices witnessed a significant drop last week. On the MCX, 24-carat gold fell by ₹1522. In the domestic market, gold rates decreased by ₹506 per 10 grams.
Gold Rate Update: Gold prices have seen a consistent decline over the past week. From the Multi Commodity Exchange (MCX) to domestic markets across the country, gold prices have decreased. The rate for 24-carat gold on the MCX has fallen by more than ₹1500 per 10 grams throughout the week. This decline is considered significant for both investors and general consumers.
How much did gold fall on the MCX?
On the first trading day of the past week, i.e., Monday, the rate for 24-carat gold with an expiry date of August 5 was ₹99,328 per 10 grams on the MCX. By the end of the week, on Friday, this rate had fallen to ₹97,806 per 10 grams. On July 25 alone, a significant decrease of ₹920 was recorded in gold rates. Overall, it became cheaper by ₹1522 during the entire week.
Decline in the domestic market as well
A similar decline was observed in the domestic market. According to the website of the Indian Bullion Jewellers Association (IBJA), the price of 10 grams of gold with 999 purity was ₹98,896 on July 21, which decreased to ₹98,390 by July 26. This represents a decrease of ₹506 in one week. Furthermore, a decrease in the prices of gold with other purities was also observed.
Decrease in the rates of gold with different purities
The price of 22-carat gold was around ₹96,030 per 10 grams, while the rate for 20-carat was ₹87,570, and the rate for 18-carat was ₹79,690 per 10 grams. Meanwhile, 14-carat gold was recorded at around ₹63,460 per 10 grams.
Separate charges apply to jewelry purchases
It is important to note that the rates issued by IBJA are uniform across the country. However, when customers purchase gold jewelry from bullion shops, they have to pay an additional 3% GST and making charges. These making charges can vary from city to city, and this affects the total price.
How to check the purity of gold
It is essential to check the purity of gold when buying it. Most jewelry uses 22-carat gold. The easiest way to know the purity is through the hallmark. A special number is recorded on each carat purity of gold. For example:
999 on 24-carat gold
958 on 23 carat
916 on 22 carat
875 on 21 carat
750 on 18 carat
Whenever you buy jewelry, be sure to check the hallmark marked on it. This will ensure that the jewelry you are buying is genuine and meets purity standards.
What is the reason behind the price drop?
There can be several reasons for the fall in gold prices. Factors such as the strengthening of the dollar in the global market, changes in interest rates, and changes in investors' risk-taking appetite affect gold prices. In addition, a decrease in demand in the domestic market or weak signals from foreign markets can also lead to a fall in gold prices.
